Congressman: NASA's foreign contractor hires a security risk

A Virginia congressman claims NASA Langley Research Center in Hampton and other NASA facilities are engaged in a "workaround" of federal hiring restrictions for foreign nationals — a practice he says could be compromising national security.

At a press conference Thursday, Republican Rep. Frank Wolf said "several dozen" Chinese nationals were employed by a Langley contractor "in an apparent attempt to circumvent appropriations restrictions" Congress put in place to prevent hiring "certain foreign nationals of concern." Wolf said he was alerted to the practice by unnamed "whistleblowers" at Langley.

He cited in particular a Chinese national who he claims is affiliated with an institution in China that the U.S. government designated an "entity of concern." He didn't name the employee, but said he believes he is still employed at Langley.

In a statement Thursday afternoon, however, NASA's associate administrator for communications, David Weaver, said that's not the case.

"Although we don't normally comment on investigations," Weaver said, "because information now has been made public, we can confirm we are familiar with the situation involving a Langley contractor, have completed our review and referred the matter to the appropriate law enforcement officials. The contractor in question no longer works at Langley."

He added that "NASA takes any allegation of a security violation very seriously, and follows long-established procedures to investigate these allegations quickly and thoroughly." Investigations are conducted by NASA security and counterintelligence professionals in conjunction with appropriate law enforcement.

Weaver said NASA invests more than $200 million every year on homeland security and counterintelligence activities, and requires annual security training for all employees.

Foreign nationals are permitted to work at NASA facilities, he said, and contractors who hire them must comply with all U.S. Export Control and all immigration laws and regulations.

NASA also applies its own security and export control review to determine whether to allow a contractor who is a foreign national at its facility, he said. Those from China and other specially designated countries must undergo additional background screening and conditions on their visits, can only access pre-approved information and are subject to full-time escort requirements.

According to Wolf, billions of dollars in U.S. trade secrets are being stolen by foreign states. "This has a real and corrosive impact not just on our national security, but also on our ability to compete and grow our economy," he said. "The result of this theft is fewer jobs for American workers."

Wolf is chairman of the Commerce, Justice and Scienceappropriations subcommittee, which funds NASA, and is a longtime critic of the Chinese government over human rights abuses and cyber espionage.

"I have a clear picture of the Chinese government's systematic and aggressive efforts to steal our sensitive technology and undermine U.S. competitiveness," Wolf said.

According to the U.S. Justice Department, of 20 cases of economic espionage and trade secret criminal cases from January 2009 to January 2013, 16 involved Chinese nationals.

Those convicted include electrical engineers, software engineers, automobile engineers, research chemists and research scientists working for such companies as Motorola, General Motors, Space & Navigation and Dow Chemical Company.

One was a former Boeing engineer convicted of stealing trade secrets related to the Space Shuttle program and the Delta IV rocket. NASA helped conduct that criminal investigation.

Earlier this week, Wolf also demanded that Chinese participants be kept from an annual international meeting of the Committee on Earth Observation Satellites to be held next week at NASA Langley. He said NASA had failed to give Congress the certifications of Chinese participants 14 days ahead of time, as federal law requires.

In a letter to NASA Administrator Charles F. Bolden Jr. on that meeting, Wolf cited a strategy paper released last month by the Obama Administration identifying China as a leading espionage threat with particular interest in "unmanned aerial vehicles, and other aerospace/aeronautics technologies — the very work in which the Langley Research Center specializes."

According to NASA Langley, no Chinese nationals are attending that meeting.

Wolf said he has turned his information on NASA's hiring practices over to the FBI, which he said will investigate. This is not the first time he has called for an investigation of NASA policies or personnel.

Last month, Wolf publicly announced that the FBI and other law enforcement agencies had begun investigating officials at NASA Ames Research Center in California in 2009 over a possible illegal transfer of weapons system technology to foreign countries, including China. He also complained in letters to the FBI and Justice Department that the investigation had stalled.

Wolf claims the U.S. Attorney had sought indictments in the Ames matter, but that the Justice Department had refused them. In subsequent statements to The Washington Times, however, the U.S. Attorney denied making any such request, and the Justice Department denied refusing it.

Now, Wolf and Rep. Lamar Smith, R-Texas, are calling on the Justice Department and the FBI to investigate that delay, citing "deep concern" that political pressure may be a factor.

Wolf's appropriations committee also funds the Justice Department and the FBI.

On Thursday, Wolf called for seven steps to address "systematic security issues" at NASA, including a review of all foreign nationals with current NASA credentials, an investigation into hiring practices, and criminal sanctions if it's found NASA officials conspired to violate federal law.

"We appreciate the management suggestions Chairman Wolf has offered up and will take those recommendations into consideration," Weaver said.